65B.48 REPARATION SECURITY COMPULSORY.
Subdivision 1. General requirement and coverages.
Every owner of a motor vehicle
of a type which is required to be registered or licensed or is principally garaged in this state
shall maintain during the period in which operation or use is contemplated a plan of reparation
security under provisions approved by the commissioner, insuring against loss resulting from
liability imposed by law for injury and property damage sustained by any person arising out of the
ownership, maintenance, operation or use of the vehicle. The plan of reparation security shall
provide for basic economic loss benefits and residual liability coverage in amounts not less than
those specified in section
65B.49, subdivision 3
, clauses (1) and (2). The nonresident owner of a
motor vehicle which is not required to be registered or licensed, or which is not principally
garaged in this state, shall maintain such security in effect continuously throughout the period of
the operation, maintenance or use of such motor vehicle within this state with respect to accidents
occurring in this state; such security shall include coverage for property damage to a motor
vehicle rented or leased within this state by a nonresident.
Subd. 2. Types of security.
The security required by sections
provided by a policy of insurance complying with sections
which is issued by
or on behalf of an insurer authorized to transact business in this state or, if the vehicle is registered
in another state, by a policy of insurance issued by or on behalf of an insurer authorized to
transact business in either this state or the state in which the vehicle is registered or by qualifying
as a self-insurer.
Subd. 3. Self-insurance.
Self-insurance, subject to approval of the commissioner, is effected
by filing with the commissioner in satisfactory form:
(1) a continuing undertaking by the owner or other appropriate person to pay tort liabilities
or basic economic loss benefits, or both, and to perform all other obligations imposed by sections
(2) evidence that appropriate provision exists for prompt administration of all claims,
benefits, and obligations provided by sections
(3) evidence that reliable financial arrangements, deposits, or commitments exist providing
assurance, substantially equivalent to that afforded by a policy of insurance complying with
, for payment of tort liabilities, basic economic loss benefits, and all
other obligations imposed by sections
(4) a nonrefundable initial application fee of $2,500 and a renewal fee of $1,200 for political
subdivisions and $1,500 for nonpolitical entities every three years.
Subd. 3a. Rulemaking.
To carry out the purposes of subdivision 3, the commissioner may
adopt rules pursuant to chapter 14. These rules may:
(a) establish reporting requirements;
(b) establish standards or guidelines to assure the adequacy of the financing and
administration of self-insurance plans;
(c) establish bonding requirements or other provisions assuring the financial integrity of
entities that self-insure other than bonding requirements for self-insuring political subdivisions;
(d) establish other reasonable requirements to further the purposes of this section.
Subd. 4. State or political subdivisions to provide security.
The state of Minnesota or any
agency thereof and any political subdivision of the state or agency thereof shall provide security
by lawfully obligating itself to pay benefits in accordance with sections
as a self-insurer pursuant to subdivision 3, or through purchase of a plan of reparation security.
Subd. 5. Motorcycle coverage.
(a) Every owner of a motorcycle registered or required to be
registered in this state or operated in this state by the owner or with the owner's permission shall
provide and maintain security for the payment of tort liabilities arising out of the maintenance or
use of the motorcycle in this state. Security may be provided by a contract of liability insurance
complying with section
65B.49, subdivision 3
, or by qualifying as a self insurer in the manner
provided in subdivision 3.
(b) At the time an application for motorcycle insurance without personal injury protection
coverage is completed, there must be attached to the application a separate form containing a
written notice in at least 10-point bold type, if printed, or in capital letters, if typewritten that states:
"Under Minnesota law, a policy of motorcycle coverage issued in the State of Minnesota
must provide liability coverage only, and there is no requirement that the policy provide
personal injury protection (PIP) coverage in the case of injury sustained by the insured.
No PIP coverage provided by an automobile insurance policy you may have in force will
extend to provide coverage in the event of a motorcycle accident."
Subd. 6. Self-insurer defined.
A person providing security pursuant to subdivision 3 is
Subd. 7. Security covering vehicle and secured vehicle defined.
"Security covering the
vehicle" is the insurance or other security so provided. The vehicle for which the security is so
provided is the "secured vehicle."
Subd. 8.[Repealed, 1984 c 592 s 94
History: 1974 c 408 s 8; 1975 c 160 s 1; 1978 c 674 s 57; 1983 c 203 s 3,4; 1984 c 640 s 32;
1985 c 168 s 9; 1986 c 444; 1987 c 337 s 105; 1995 c 233 art 2 s 56; 1997 c 200 art 1 s 44; 1999
c 177 s 68; 1999 c 223 art 2 s 8; 2005 c 132 s 21